Budget planning tips for college students

Krishnendu Chatterjee

Dec 28, 2017 18:25 IST

Budget planning tips for college students

The threshold of adolescence is an exciting phase of life, and it stays at its peak during the college days. This is the time when we tend to sideline maturity and common sense to make room for fun and enjoyment. It is at this period of time, we make friends and plan to live with alacrity no matter what the situation is or does the situation even allow it or not. The lack of financial planning and life management skills during the period of college days is a big reason to worry, which eventually backfire in the long run.

Before you fall in the abyss of this trap during your college days, we have come up with few financial planning hacks that you can implement to make your days secure and joyful at the same time.

Here you go….

Learn the art of budgeting

It is important for you to observe your expenses as this is the first baby step towards a better budget planning during college days. Until now, you were not exposed to the harsh realities of life as your parents were managing all your expenses. However, in college days, you alone need to take control of your expenses to bring balance in your life. Yes, it’s difficult at the first place, nevertheless, the practice of keeping a close eye on your expenses and maintaining a record will make you a master in this field.

Follow these steps to manage your finances like a pro:

Maintain a budget diary

The first step is to create a budget plan and listing down all your spending requirements. Start prioritizing things, and make a budget plan on the things that you need most for the month. Things such as room rent, books, tuition fees, food and utilities should be in the top of priority list. Subsequently, make another list of expenses that you may spend on clothing and entertainment. Then, check with the budget you have for the month, and start spending accordingly.

Try to live within the limits

Since, you are in your college days; the financial resources within your reach are limited. Therefore, better not to fall prey to the glamour and flamboyance as it will push you to spend more and more, resulting in nothing but a heap of debt on your shoulders. Set your priorities, know your limits and then spend accordingly to save yourself from the stress of debts. This practice will also help you to take control over your expenditures and make you a better financial planner in the long run.

Don’t let the evil of debts grow

It is understandable that at some point, the budget goes out of hand, and it is necessary as well seeing the importance of expenses. In such cases, there are no options left but to lend money from friends or take help of credit cards. However, make sure that the debt doesn’t keep on multiplying and try to repay the pending money on time. Meanwhile, if you are using a credit card, ensure to handle it with care or else it will backfire with its huge interest rates and hidden costs that will add to the tally of debts.

Set future goals

It will be good if you start investing during your college days, as it will secure your future. Therefore, start investing mutual funds, recurring deposit and insurances. This will help you to fetch healthy returns in the future when you plan to buy assets like a home or a car.

In case, you want to have your say, make sure to write down your comments in the box below. Also, share this article across your friends circle to let them know about how to create and plan a budget during their college days.